A sweet taste for Thorntons as Easter trading maintains turnaround

The retailer said trading over its key Easter, Valentine’s Day and Mother’s Day trading periods was “satisfactory”, helping it offset tough conditions on the high street.

Thorntons shares soared as much as 10 per cent as the group said it now expects underlying pre-tax profits for the year to the end of June to beat market forecasts for £3.1m.

However the group, which trades from more than 300 owned stores and around another 190 franchises, said it remains cautious on the economy and consumer spending.

Solid Easter trading follows a strong Christmas performance, when Thorntons recorded a big jump in supermarket sales of chocolates, helping half-year profits rise 70 per cent.

Its buoyant recent trading marks another step in the group’s turnaround, which involves shrinking its footprint to a core estate of 180 to 200 sites.

The overhaul, spearheaded by chief executive Jonathan Hart, follows a series of profits warnings in 2011 when the chocolatier was hit by the consumer spending squeeze and intense competition from supermarkets.

Analysts at Panmure Gordon said the unscheduled update suggests annual profits will be around 10 per cent ahead of consensus.

They added: “We believe that it can drive sales through a number of channels and that its profits will further benefit from a reduced cost base.

“We believe that historic levels of profitability are within reach.”

The company, established in Sheffield by Joseph William Thornton in 1911, has been coping with a slowdown in consumer demand by closing its high street stores and focusing more on its online business and selling through wholesale channels. In February it reported a 70 per cent rise in first-half profit to £5.3m.

Brokers at Investec reiterated their ‘buy’ recommendation on Thorntons’ stock, saying yesterday’s statement showed “continued positive momentum in the business”.

Shares closed at 75p (+6p), a rise of 8.7 per cent.